The Mandatory Provident Fund Schemes Ordinance was enacted in 1995 and launched in 2000. The Hong Kong employers have legal obligation to comply the ordinance, to enroll employees into the MPF scheme are participating to protect their retirement.

Except for exempt persons, employers should enroll both full-time and part-time employees who are at least 18 but under 65 years of age in an MPF scheme within the first 60 days of employment. Also, the casual employees who are employed in the construction industry or the catering industry on a day-to-day basis, or for a fixed period of less than 60 days. MPF arrangement is required for casual employees no matter how short a period they are employed, even if it is just one day.

Employers and employees are each required to make regular mandatory contributions of 5% of the employee’s relevant income to an MPF scheme, subject to the minimum and maximum relevant income levels. For a monthly-paid employee, the minimum and maximum relevant income levels are HK$7,100 and HK$30,000 respectively.

Employees, self-employed persons and employers may choose to make voluntary contributions on top of their mandatory contributions, that is the only type of voluntary contributions that is entitled to tax deduction. In the 2019-20 year of assessment and each subsequent year of assessment, the tax-deductible limit per year is HK$60,000.

When a regular employee who is a member of an MPF scheme ceases employment, the employer should arrange for the last payment of contributions for and in respect of that employee by the next contribution day and notify the MPF trustee of the date of termination of employment of the employee via the next remittance statement or a written notice.